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Pensions
Pension scams cost UK savers many thousands of pounds every year. This guide covers the warning signs, the most common tactics, and exactly what to do if you think you've been targeted.
A pension scam is any attempt to trick you into transferring, releasing, or investing your pension savings in a way that benefits the scammer rather than you. Pension scams often start with unsolicited contact and typically involve pressure to act quickly, before you've had a chance to check who you're really dealing with.
The three most commonly reported patterns are:
Other warning signs include unusual or unregulated investments (such as overseas property, storage units, or cryptocurrency), complicated or unclear fee structures, offers to help you access your pension before age 55, and requests to move your entire pension pot to a single, unfamiliar destination. If you spot any of these signs, stop, and check the firm on the Financial Conduct Authority Register before doing anything else.
Pension scams take many forms, but they all share the same goal: persuading you to transfer, release, or invest your pension savings in a way that benefits the scammer rather than you.
Unsolicited contact about your pension, by phone, text, or email, has been illegal since a cold-call ban backed by the Financial Conduct Authority and The Pensions Regulator came into force in January 2019. Any call, text, or email you didn't ask for about "reviewing" or "unlocking" your pension is already breaking the law, whatever else it contains.
Scam tactics don't stand still. Fraudsters have moved from cold calls to social media adverts, fake investment platforms, and cloned websites that copy the branding of real, regulated firms. That's why this guide focuses on recognisable patterns rather than a fixed list of scam names. If you're new to pensions generally, it may help to first understand the types of pension in the UK before you assess whether an offer makes sense for your own scheme.
Before you engage with anyone about your pension, run through this checklist. Genuine advisors and legitimate pension schemes will never pressure you, and they'll always be findable on the Financial Conduct Authority Register.
The pension liberation schemes that cause the most damage are usually the ones dressed up as a legitimate 'early access' option. The tax penalty on an unauthorised withdrawal can be as high as 55% of the amount taken, on top of whatever fee the scammer has already deducted. By the time most people realise, both the tax and the fee are gone.
Pension scams tend to fall into a handful of recognisable categories, even though the details vary from case to case. Knowing the common types of pension scams helps you spot one before it costs you anything. Some are even disguised as an offer to help with consolidating your pensions into one pot - a legitimate goal that's also frequently used as cover for fraud.
Know the tactics
Second opinion
An advisor can help you check whether a firm is genuinely regulated before you commit to anything.
Scam tactics evolve constantly. The latest pension scams increasingly use social media investment adverts, fake celebrity or news endorsements, and AI-generated profiles of "advisors" who don't exist. A convincing website and a professional-looking profile are no longer proof that a firm or individual is genuine.
One of the largest scams involving pension savers in the UK is the British Steel Pension Scheme transfer scandal, in which thousands of steelworkers were advised to transfer out of a secure, defined benefit scheme into unsuitable and often unregulated investments. The scale of the harm led to Financial Conduct Authority enforcement action against multiple firms and payouts through the Financial Services Compensation Scheme. It's a stark example of how far-reaching a pension scam can become when advice goes unchecked, and why verifying any advisor or scheme before you transfer matters, whatever your pension is worth. If you hold a defined benefit pension and you're considering a transfer, get regulated defined benefit transfer advice first - this is exactly the type of scheme fraudsters have targeted before.
Some pension scams don't stop at your pension pot. If you hesitate, a fraudster may try to pressure you into remortgaging your home or taking out a loan secured against it to find more money to "invest". Never agree to secure additional borrowing against your home to fund a pension transfer or investment. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
The Pension Scams Action Group and the Financial Conduct Authority both point to a handful of practical steps that make a real difference, whatever form a scam takes.
Protect yourself
Don't engage
Hang up on unsolicited calls and don't click links in unexpected texts or emails about your pension. Unsolicited contact about your pension has been illegal since January 2019.
Check the register
Search the Financial Conduct Authority Register and the ScamSmart warning list before dealing with any firm, however convincing they sound.
Book a Pension Wise appointment
Pension Wise offers impartial guidance on your options before you make any transfer decision. Use it before you sign anything.
Take your time
A genuine offer will still be there tomorrow. Reject any pressure to decide quickly, and don't feel you have to stay on a call or reply straight away.
Get a regulated second opinion
Speak to an advisor for a second opinion before transferring or investing any part of your pension. An independent view from someone with no stake in the original offer is one of the strongest protections against fraud.
Stop all contact immediately. Don't sign anything, transfer anything, or give any more personal or financial details. Speak to MoneyHelper (moneyhelper.org.uk, 0800 138 7777) for impartial guidance on what you're dealing with, and get a second opinion from a regulated advisor before doing anything else.
Yes, someone can steal your pension if you're persuaded to transfer or release funds to a fraudulent scheme, which is exactly why acting quickly matters. Whatever stage you're at, MoneyHelper (moneyhelper.org.uk, 0800 138 7777) offers impartial guidance and is a good first call if you're not sure what's happened or what to do next. Checking a scheme against a list of the best pension providers in the UK can also help you sense-check whether you're dealing with a recognised, mainstream provider.
No pressure to proceed.
If you've been contacted about your pension and you're not sure whether it's genuine, or you simply want a second opinion before you transfer or invest anything, Money Saving Advisors can help. We compare a wide range of regulated pension advisors who can check a firm's credentials, review any offer you've received, and talk through your options with no pressure to proceed.
This isn't about selling you anything. It's about giving you access to someone independent, with no stake in the original offer, before you make a decision you can't undo. Read our guide on how to find a regulated pension advisor, or for general pension advice, visit our pensions hub.
Common questions
The latest pension scams increasingly use social media investment adverts, fake celebrity or news endorsements, and AI-generated profiles of advisors who don't exist. Fraudsters also send fake letters, emails, or texts appearing to come from the Department for Work and Pensions, Pension Wise, or the Financial Conduct Authority. The format changes, but the underlying tactics - unsolicited contact, pressure to act fast, and promises of unusually high returns - stay the same.
The most commonly reported pension scams are pension liberation or early release scams, pension review scams, clone firm scams, cryptocurrency and unusual investment scams, overseas investment and QROPS transfer scams, and government-body impersonation scams. Most scams combine more than one of these tactics.
Pension liberation and early release scams, pension review scams, and clone firm scams are consistently the three most frequently reported patterns across Financial Conduct Authority and Action Fraud data. All three typically start with unsolicited contact and end with pressure to transfer your pension quickly.
Yes. If you're persuaded to transfer or release your pension savings to a fraudulent scheme, that money can be lost, sometimes permanently. This is exactly why checking a firm's legitimacy on the Financial Conduct Authority Register, and getting a second opinion before any transfer, matters so much.
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